Tecma University

California Companies Moving to Tijuana

In recent years, Tijuana has become quite a destination of choice for international manufacturing and California companies moving to Tijuana.

Why are California Companies Moving to Tijuana?

Over the past several years, a noticeable shift has been occurring. California has long been a popular location for manufacturing and technology companies, but in recent years, many companies are exiting the US state for other locations more favorable to these industries. Some of the many companies to leave or announce plans for relocating outside of California in recent years include:

Bazz Houston Co.

CB Richard Ellis

Kulicke & Soffa Industries Inc.

MotorVac Technologies

Kulicke & Soffa Industries Inc.

True Games Interactive Inc.

Pixel2Canvas

Lennox Hearth Products Inc.

These and many dozens of others have found that California no longer suits their needs in an increasingly competitive global marketplace. And for many of them, they don’t have to move far.

Learn how to start-up and manufacture in Mexico at reduced risk and cost.

Tijuana’s Welcoming Technology Climate

Many of these companies have simply relocated south of the border in Tijuana and found precisely what they were looking for. Of the many motivating factors, executives from these companies often cite the lower labor costs associated with manufacturing in Tijuana, Mexico. But the phenomenon is not limited to California. Companies moving to Tijuana from all across the US hope to invest in what many believe is a booming climate for innovation within the technology industry. Manufacturing here is highly customizable, quality oriented, and much closer to market than offshoring to a manufacturing facility in Asia.

In fact, Tijuana is experiencing what some describe as a technology revolution. High-tech companies are flocking to the border town with new ideas, venture capital, and market connections in the US to take advantage of the entrepreneurial climate not unlike that of Silicon Valley in the 1980s.

One of the success stories out of the many companies moving to Tijuana as part of this new revolution is 3D Robotics, a startup drone maker, that, until recently, manufactured their drones in southern California. In 2011, this new company moved to a Tijuana apartment, quickly scaling up to the point they could move into their current manufacturing space of 12,000 square feet, where they now produce thousands of drones designed by US engineers and sold largely to a US consumer market.

According to Tim McConnell, the company’s director of engineering, 3D Robotics was able to quickly modify their designs and manufacturing practices to scale up and become quite profitable so quickly due to the proximity to the US and the ability “to drive down there with your engineers, talk to the manufacturing folks, give feedback back and forth.” Judging from the rise of co-working spaces, technology manufacturing plants, and technology hubs springing up all over the region, many other technology companies moving to Tijuana from California share this sentiment.

“The Tecma Group of Companies' services allow me to concentrate on making and selling wood pallets. I have Tecma handle all administrative functions, Mexican Customs, human resources, all permitting, as well as the legal aspects of manufacturing in Mexico. It’s a very good, complementary relationship. They provide me with a project manager, which means I don’t have to deal with a lot of individuals. I deal with one individual, who then deals with experts in all relevant disciplines on my behalf.”

“When we purchased the Dashmat product line, which is the product that we are manufacturing in Ciudad Juarez, we were able to establish a Mexico manufacturing plant with Tecma very quickly. They got us up and running very smoothly under their Mexico Shelter Manufacturing Partnership (MSMP). We like Tecma because it is a stable company that has been around for many years, and looks to be around for many more. Tecma appears to care about our Mexico business' success is very responsive to our needs.”

“Since we started, we have been able to maintain a competitive advantage over many of our competitors that have moved their manufacturing to China by reducing lead times to 4 weeks less than most of our competitors. This has given us the ability to compete on pricing against many of our competitors that have gone to China. We found that in our Juarez staff in Mexico we found a highly-trained workforce with strong background, and the capability to do mannequin manufacturing in Mexico.”

“More than a decade ago, Portage Electric Products Incorporated was faced with the reality that we were going to have to consider manufacturing in another country in order to maintain our competitiveness in the global marketplace. We chose Mexico, as we could be here literally within hours, should the need arise. We chose the Tecma Mexico Shelter Manufacturing Partnership (MSMP) because it provided virtually everything we needed to begin with and support an ongoing Mexico manufacturing operation.”

This quarterly publication will be populated with content that is useful and relevant to readers that are contemplating Mexico investments, have operations already within the Republic, as well as to other individuals that have an interest in Mexico and its manufacturing sector.

Reduce Production Costs 50% or MoreIf are you considering setting up manufacturing in Mexico fill out the form below or call 915-534-4252.

What is Tecma Shelter Service?Your role is to concentrate on manufacturing. Tecma takes care of everything that has to do with Mexico. No more complicated than setting up a new manufacturing operation just across town.

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